Texas Instruments has become the latest recipient of CHIPS Act funds, with a total of $1.6 billion in grants awarded to the company as part of the 2022 law signed by President Biden to boost domestic silicon production and combat increasing Chinese chip imports. In addition to the grants, Texas Instruments will also receive $3 billion in loans and tax credits totaling $6 to $8 billion. This funding is expected to create over 2,000 US manufacturing jobs and numerous indirect jobs related to construction, suppliers, and supporting industries. The company plans to invest around $40 billion in Utah and Texas, including the construction of two new factories in Sherman, TX, with completion expected after 2030. The grant money will be used for three chip fabs already under construction in Texas and Utah, producing 300mm silicon wafer chips for less advanced processors. The CHIPS Act aims to reduce China’s influence in the silicon industry and other recipients of funding include Intel, TSMC, and Samsung. The Commerce Department prioritizes projects that can be completed by the decade’s end, leaving delayed plants without federal funding. The $280 billion CHIPS Act, passed in 2022, includes subsidies for domestic chip manufacturing, tax credits for manufacturing costs, and funding for workforce training. Biden praised the act for strengthening national security and ensuring that companies invest in America and employ union workers for manufacturing operations.
